Report Finds Entitled Young People Must Be Taxed More To Improve Living Standards For Resource Companies

EFFIE BATEMAN | Lifestyle | Contact

In some bad news for working Australians, the government has today confirmed that younger generations will have to bear the brunt of higher taxes to pay for essential services, with no more tax cuts in sight for the next decade.

This comes as the government faces the choice between tax relief and deep cuts to spending, as properly taxing companies that profit from Australia’s natural resources hasn’t been considered.

A report released yesterday by the independent Parliamentary Budget Office on the expected state of the budget revealed that younger Australians will be the hardest hit, as it’s expected that personal income tax will rise from 47.7% to 53% by 2035-36.

Unlike Norway, which taxes oil companies up to 80%, Australia makes most of its taxation revenue from personal taxes, generating $801.7 billion in 2023-2034.

Comparatively, in 2024, the total PRRT (Petroleum Resource Rent Tax) payable was A$1.14 billion – four times lower than the amount students paid in HECs debt repayments.

Whereas Norway has accumulated $1.8 trillion towards a sovereign wealth fund from oil taxes, licensing fees and profits from the state energy company, Australia’s fund stands at just $252 billion – a number comparatively quite low given Australia is the 8th most resource rich country in the world.

In addition to paying more taxes, working Australians are also expected to for the Darwin Liquified Natural Gas leak, which gas companies and government agencies kept from the public for years.

Documents obtained by the ABC revealed a design fault in the tank caused a major methane leak that lasted for 18 years, equivalent to 8,300 new cars on the road every year.

Despite this, federal regulators have not forced Santos to repair or replace the tank.

It is set to be filled up again and will continue for decades to come.

More to come.